Find definitions to many financial terms.

Balloon MortgageA mortgage with periodic installments of principal and interest that do not fully amortize the loan. The balance of the mortgage is due in a lump sum at a specified date in the future, usually at the end of the term.

Balloon PaymentThe final payment (balance due) of a balloon note.

Barclay's Capital Aggregate Bond IndexA benchmark index made up of the Lehman Brothers Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment-grade quality or better, have at least one year to maturity, and have an outstanding Par value of at least $100 million. On September 20, 2008, Barclay's Capital acquired Lehman's Index business, and the capabilities of that business remain the same.

Barclay's Capital Government/Credit IndexAn index that represents U.S. Treasury and agency bonds and all publicly issued nonconvertible investment grade domestic corporate debt. On September 20, 2008, Barclay's Capital acquired Lehman's Index business, and the capabilities of that business remain the same.

Barclay's Capital Municipal Bond IndexA benchmark index that includes investment-grade, tax-exempt, and fixed-rate bonds with long-term maturities (greater than two years) selected from issues larger than $50 million. On September 20, 2008, Barclay's Capital acquired Lehman's Index business, and the capabilities of that business remain the same.

BeneficiaryAn individual named as the recipient of the income or principal of an estate or trust.

BequestProperty given as a gift under the terms of a will.

Blue Chip StocksHigh-quality, common stock of well-known companies with extended records of earnings and dividends, well-respected management, and prospects for continued strong performance. Generally, these stocks are the choice of investors seeking long-term growth.

BondA debt instrument that is a "promise to pay" issued by corporations, federal and state governments, and municipalities to raise capital. The bond issuer promises to pay the holder of the bond the principal amount of the loan when the bond matures and a fixed rate of interest periodically during the term of the bond.

BorrowerA mortgagor who receives funds in the form of a loan with the obligation of repaying the loan in fully with interest, if applicable.

Bridge FinancingA form of interim loan, generally made between a short term loan and a permanent (long term) loan, when the borrower needs to have more time before taking the long term financing.

Broker (Real Estate)One who is licensed by the state to carry on the business of dealing in real estate. A broker may receive a commission for his or her part in bringing together a buyer and seller, landlord and tenant, or parties to an exchange.

Building CodeThe local regulations that control design, construction, and materials used in construction. Building codes are based on safety and health standards.

Bull/BearTerms frequently used to describe the outlook for short-and long-term market performance:

bull refers to the belief that stock prices are likely to rise;

bear refers to the expectation that prices will decline.

BuydownA payment to the lender from the seller, buyer, third party, or some combination of these, causing the lender to reduce the interest rate during the early years of a loan. The buydown is usually for the first 1 to 5 years of the loan.